The steel industry in the northern Indian province of Punjab is facing a 65-70 percent decrease in
production due to power cuts to be implemented four days a week following a severe energy shortage in the region.
"The power cuts will be a death knell to the already recession-hit industry which is highly power-intensive," K K Garg, president of the All
India Induction Furnace Association, said on Tuesday, July 31.
The province of Punjab has around 200 steel furnaces and 400 rolling mills catering to an entire range of engineering and construction material manufacturers located in the region. The induction furnaces in the province have a combined
production capacity of 10,000 mt per day.
"If severe restrictions in power supplies continue, all furnaces and rolling mills will have to be shut down as no value addition is possible," Garg said.
The Punjab authorities said that poor monsoon rains resulted in a sharp rise in demand for power in the agriculture sector for operating pumps for irrigation and so the government was forced to impose restrictions regarding power supply and give priority to the agricultural industry.